Internal Auditors
Accounting glossary · Understand, connect, apply
Internal auditors provide independent and objective assurance and advice within an organization’s governance arrangements, evaluating areas such as risk management, controls and governance.
Example
An internal audit team reviews purchasing approvals and reports weaknesses to the appropriate oversight body.
Remember the difference
Internal audit is different from an external financial-statement audit. Its objectivity and reporting arrangements are important even when staff are employees.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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